Nothing really that new in the Strategy but I think they are just trying to communicate better.
Its not like there is a product overhang domestically. The domestic market has been growing constantly for a while with TGR's marketing and TGR used to use foreign market, out of long term strategy, rather than returns. The margins domestically have justified only selling domestically, for a long time.
In most markets, strictly there is no concept of too much product; its just about price.
I did a rather forensic revenue/profit analysis a while ago. I don't have access to it now but, from memory, in 2009 TGR pretty much flooded the domestic market with Salmon, at the expense of margins. Funny enough, overall profitability was sound: it may have been their best profit year.
Following that year, they have overhauled their operations and dropped all the CapX and their profit margin per fish is dramatically higher, mainly by lowering costs.
If they sold as many fish in 2012 as they did, from memory, in 2009, their profitability would be still far higher...of course they are building their fish inventory to capacity.
TGR Price at posting:
$1.30 Sentiment: None Disclosure: Held
